Business

AT&T reduces fees for people who bring own devices

NEW YORK — AT&T is joining T-Mobile in reducing monthly fees for people who pay for their own devices.

It's the latest break from a long-standing practice of offering subsidies on devices to lock customers into two-year service agreements. Many customers have been forgoing those subsidies anyway as they opt for plans that allow frequent phone upgrades. But until now, AT&T's and Verizon's service fees have still factored in the costs of those subsidies, whether the customer uses them or not.

Beginning Sunday, customers will be able to switch to the cheaper plans if they buy or bring their own phone. That includes paying for the device in installments through the frequent-upgrade Next plan. Those whose contracts have run out also qualify.

It follows T-Mobile US Inc.'s decision in March to separate the costs of service and devices.

Most customers will save at least $15 a month under the new AT&T plans.

Customers switching from contract plans to Next may end up paying more at first, as high-end devices such as Apple's i-Phone 5S and Samsung's Galaxy S4 typically cost $27 a month for 20 months. However, those already on Next have been paying that monthly charge without any reduction in service fees. So their bills will now go down.

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